Tim Duncan gets back $7.5 million in settlement with ex-adviser
Retired San Antonio Spurs forward Tim Duncan has settled his lawsuits against his former financial adviser, getting back $7.5 million that the adviser defrauded from the NBA legend.
Duncan had alleged that he lost more than $20 million investing in various ventures with the adviser, Charles Banks IV of Atlanta, because of Banks’ misrepresentations. But after duking it out in court, Duncan decided to settle with Banks, who was sent to federal prison following a criminal investigation by the FBI over one of his deals with Duncan.
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“I wouldn’t say this makes him whole,” said Richard C. Danysh, one of Duncan’s attorneys at Bracewell LLP. “But given the amount of time expended by Mr. Duncan and his lawyers and the courts, the amount of money spent chasing this fellow, and Mr. Banks’ statements that he doesn’t have any (more) money, it seemed like the wise thing to do — bring it to a conclusion.”
The deal ends a federal lawsuit Duncan filed against Banks in San Antonio over allegations that Banks duped him into investing about $1.1 million in a cosmetics company that eventually went belly up. It also dismisses Banks from a federal lawsuit Duncan filed in Colorado naming Banks and Gameday, a sports merchandising company that Banks had an interest in.
Danysh said Duncan’s claim against Gameday has not been dismissed, though the company was dissolved by early 2017, court records said.
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Banks pleaded guilty to wire fraud, and was sentenced in June to four years in federal prison. He admitted that in 2012, he encouraged Duncan to loan $7.5 million to Gameday. Banks also persuaded Duncan to personally guarantee another $6 million loan made to Gameday by Comerica Bank in 2013, while Banks served as Gameday’s board chairman and financially benefited from the loans made to the company.
Banks, largely in text messages, misrepresented the terms of the loan guarantee claiming it would be beneficial to Duncan when it actually was more detrimental.
Duncan met Banks in 1998, while Banks worked for the investment firm CSI. Banks became president of CSI in 2000, and left that post in 2007. CSI was acquired in 2011 by SunTrust Sports and Entertainment Specialty Group, a subsidiary of Suntrust Banks Inc. Duncan still believed Banks was his adviser after he left CSI because Banks approached Duncan “regularly to offer investment advice and encourage him to invest or loan money in projects in which (Banks) was involved,” court records said.
The $7.5 million comes from money Banks deposited with the court as part of the restitution order that he got during his sentencing in his criminal case, though Banks is appealing the sentence.
The money had been in escrow, and it was released to Duncan last week, along with some accrued interest according to Danysh.